As a seasoned crypto investor with a decade of experience navigating the rollercoaster ride that is the digital asset market, I can attest to the fact that geopolitical tensions have always been a significant factor influencing market movements. The latest flare-up between Iran and Israel has once again underscored this truth.
The turmoil in the digital currency market persists, fueled by the surge of volatility due to intensifying geopolitical conflicts, particularly between Iran and Israel. This tension has stirred apprehension worldwide, causing a substantial effect on Bitcoin exchange-traded funds (ETFs) that trade on the spot market. On October 3, these ETFs recorded an overall withdrawal of $54 million. Interestingly, it was mainly two US-based Bitcoin spot ETFs that accounted for these withdrawals.
As reported by blockchain analysis company SoSoValue, there was a significant withdrawal of funds from Ark Invest’s ARKB and Fidelity Investment’s FBTC, whereas Grayscale’s GBTC saw less impact during this period.
Contrasting Trends in Bitcoin ETFs
Remarkably, despite escalating geopolitical conflicts in the Middle East, BlackRock’s IBIT managed to draw in $37 million in investments – a notable exception to the general trend. This impressive run has now extended for 17 straight days without any outflows, demonstrating the fund’s robust performance.
At the moment, BlackRock’s IBIT has amassed a total net inflow of approximately $21.56 billion, with Bitcoin accounting for about $61,536 each, representing a 2% allocation within their investment portfolio. Over the past 24 hours, the volatility of Bitcoin stands at 2.1%, while its current market capitalization is around $1.22 trillion and its 24-hour trading volume amounts to approximately $34.58 billion.
Starting from early October, BlackRock’s product has consistently delivered strong results, attracting approximately $40.8 million in investments on the first day of the month. Despite the drop in Bitcoin spot ETFs due to Iran’s missile attack on Israel on October 1, which hit a two-week low, IBIT demonstrated robustness throughout this period.
On Thursdays, Bitwise’s Bitcoin ETF, BITB, received approximately $3 million in new investments. This marks the first increase in investment for this product since the beginning of the current month.
As a researcher, I’ve observed a surge of investor attention towards funds like Invesco Galaxy’s BTCO, with an impressive inflow of approximately $2.65 million.
On October 3rd, these three investment funds in cryptocurrencies were the ones that experienced an inflow of money from investors, while the other six – VanEck HODL, Franklin Templeton’s Digital EZBC, WisdomTree’s BTCW, and three others – chose to remain idle, observing as the market responded to global uncertainties.
Global Bitcoin ETF Market Feels the Impact of Middle East’s Crisis
Outside of the U.S., the global Bitcoin exchange-traded fund (ETF) market is likewise impacted significantly by ongoing crises and market doubts. In Hong Kong specifically, no Bitcoin ETFs received new investments on Thursday, a sign of the overall market’s cautiousness.
Based on information from SoSoValue, it’s shown that the ChinaAMC Bitcoin ETF experienced a decrease of 0.83%. Additionally, two other ETFs also saw decreases – one by 0.49% and the other by 0.60%.
Regarding Ethereum ETFs, they’ve encountered comparable hurdles. In the U.S., there’s been a withdrawal of around $3.2 million from these funds, and in Hong Kong, no fresh investments have been made.
Standout is the iShares Ethereum Trust (ETHA) from BlackRock as it saw a significant inflow exceeding $12 million. In contrast, Grayscale and Fidelity experienced outflows of approximately $15 million and $587,000 respectively.
Read More
Sorry. No data so far.
2024-10-04 12:17